Economy watch

Posted: Friday, October 16, 2009 9:43 AM by firstread
Filed Under: Economy

New data shows that the economic stimulus plan created -- get ready for it -- just over 30,000 jobs and has Republicans criticizing the stimulus as a failure. "The White House defended the partial data, which included jobs saved or created from contracts that made up just 5 percent of the $339 billion in stimulus funds spent through September.
Though White House economists stressed that the data was incomplete, they still used it to argue that 1.2 million jobs had been either saved or created by the stimulus through September."

In a speech yesterday, Tim Geithner warned that the government should be careful not to withdraw stimulus support too soon and that growth will be slower than expected.

The Washington Post examines yesterday's big financial news -- that banks are raking in big profits. "The results have undercut conventional wisdom that the prosperity of banks depends on the prosperity of their customers. Generally, bank profits lag behind economic recoveries as banks wait for people and businesses to start borrowing again. But the federal government has reversed that relationship by investing more than $1 trillion in its efforts to prop up financial markets, seeking to revive the banks as a means of reviving the economy."

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Comments

Where I live there are 3 stimulus projects going on. One of them hired all new people while the other two saved jobs from being lost. Other areas may not,yet, be on the mend.

Unfortunately when we recover from a recesssion job growth is NOT a leading indicator but a trailer.

eagle1776 (Sent Friday, October 16, 2009 9:55 AM)

Federal job-training funds are allowing displaced workers to develop new skills for jobs in healthcare and other fields such as IT that are in demand. For information on salaries being paid, SalaryFor.com http://www.salaryfor.com/ offers a free and extensive database of what job seekers can expect in terms of pay. You can post your own salary or view others for free.

Karen, Seattle (Sent Friday, October 16, 2009 10:02 AM)

Like almost everyone else, I don't have access to job creation statistics. What I do know is that the part of the stimulus that has worked for me I (I own & manage 3 small businesses) is the first $250,000 of capital expenditure is expensible in 2009. I am spending that to replace old/obsolete equipment. I am sure jobs may be saved/created, and I honestly am getting tired of naysayers attacking the administration on jobs. Tax reductions for low income, extended unemployment and the above are all excellent stimulants. Good job to everyone who is creating jobs especially the President, and all in congress who have worked to create jobs and stimulate the economy whether Democrat or Republican.

John, Sacramento (Sent Friday, October 16, 2009 12:13 PM)

While it probably is a small consolation to all unemployed Americans, the good news is that while unemployment is the last thing to improve in a severe recession (visa vi Great Depression), it is also the last segment to get hit at the start of a recession,i.e. usually other cuts are made prior to initial layoffs.

Margi, Mt. Shasta (Sent Friday, October 16, 2009 12:29 PM)

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